The top 10 insurance companies in Australia collectively possess a total market capitalization of $70.9 billion, representing a substantial 99.8% of the nation’s overall insurance market valued at $71.05 billion. These figures encompass 13 insurers and brokerages actively trading on the Australian Securities Exchange (ASX), inclusive of an insurance company exclusively operating in New Zealand.
Investors frequently utilize market capitalization, or market cap, as a key metric to assess the risk profile of companies and determine their suitability for investment. Despite the Australian insurance sector offering comparatively fewer options compared to other global regions, it remains an attractive avenue for investors seeking portfolio diversification.
Whether you are an investor in search of potential insurance additions to your portfolio or an insurance professional exploring career opportunities, this article provides valuable insights. Insurance Business ranks the 10 largest insurers listed on the ASX based on market cap, offering a comprehensive overview of the prominent players in the Australian insurance landscape. Explore further to gain a deeper understanding of the leading insurance companies in the country.
1. QBE Insurance Group Limited
. Market Capitalization: $21.06 billion
. Type of Business: Insurance company
. Business Focus: General insurance, reinsurance
. Corporate Headquarters: Sydney, NSW
QBE is a prominent global insurer and reinsurer, maintaining a robust presence in 37 countries. With a workforce exceeding 14,500 employees worldwide, the company provides a diverse array of personal, commercial, and specialty insurance products, along with comprehensive risk management solutions. QBE organizes its operations into five regional divisions:
North America
Latin America
Europe
Asia Pacific
Australia & New Zealand
In its home country, Australia, QBE stands as the third-largest general insurer, commanding over 10% of the market share. The company specializes in three primary business lines:
Car and Vehicle Insurance: Encompassing coverage for boats, caravans, motorcycles, and compulsory third-party (CTP) insurance.
Home Insurance: Offering coverage for contents, landlord policies, and building warranty insurance.
Small Business Insurance: Providing diverse coverage options, including accident and health, commercial motor, farm, general liability, professional liability, and workers’ compensation insurance.
QBE Australia is distinguished by specialized teams that assist clients in finding tailored coverage to meet their unique requirements. These include:
Surety and Credit: Safeguarding businesses against bad debt and offering financial security through surety bonds.
Elders Insurance: A significant regional insurance business resulting from a joint venture between QBE and Elders Rural Services Australia.
Lenders’ Mortgage Insurance (LMI): Facilitating aspiring homeowners without sufficient savings for a deposit to expedite the house purchasing process.
QBE’s global footprint extends its services to policyholders in nearly 140 countries.
2. TAL Life Limited
. Market Share: 33%
. Claims Acceptance Rate: 96.5%
. Premiums in Force: $5.9 Billion
. Financial Strength Rating: A+
. Head Office Location: Sydney, NSW
TAL, formerly known as Tower Australia, operates as a subsidiary of the Japanese insurance giant Dai-ichi Life, having been acquired in 2011. TAL is one of the best insurance companies in Australia. The company offers life insurance policies through various brands:
TAL: Serving as the flagship brand, TAL provides life insurance policies to over 4.5 million Australians.
Asteron Life: Acquired from Suncorp in 2019, TAL discontinued new sales under this brand while maintaining existing policies.
BT Life: Acquired from Westpac in August 2022, expanding its client base to 4.8 million. New business under BT Life was closed, and TAL continues to manage existing plans.
Notably, one of TAL’s popular life insurance plans is Accelerated Protection, featuring the following key components:
Death Benefit: Pays out the sum insured upon the policyholder’s demise.
Terminal Illness Benefit: Provides an early payment if the policyholder is diagnosed as terminally ill.
Advanced Payment Benefit: Offers an advanced benefit payment, capped at $25,000, upon receipt of proof of the policyholder’s death (medical or death certificate).
Repatriation Benefit: Grants an advanced payment of the benefit, capped at $35,000, in the event of the policyholder’s demise while traveling abroad.
3. Suncorp Group Limited
Suncorp Group Limited, headquartered in Brisbane, QLD, holds a market capitalization of $15.03 billion. As a prominent financial entity in Australia, it operates as a mid-sized bank offering diverse financial services and products, including financial planning, home and personal loans, self-managed super funds (SMSFs), share trading, and superannuation accounts.
Specializing in general insurance, Suncorp commands over a quarter of Australia’s general insurance market, securing its position as the second-largest insurer in the country, behind industry giant IAG. The company operates through various brands, each catering to specific insurance needs:
AAMI: Provides home, contents, landlord, strata, car, and vehicle insurance. Additionally, offers business, health, life, and income protection policies.
Apia: Targets individuals over 50, offering car, property, health, travel, funeral, and injury support coverage.
Bingle: Focuses on affordable, no-frills car insurance. Offers tips on saving on auto insurance.
CIL Insurance: Offers caravan and RV insurance covering various types, from tiny houses to trailers.
Essentials by AAI: Provides different coverages for Australians who may not afford mainstream insurance.
GIO: Geared towards customers outside Queensland, offering car, home, life, business, and travel insurance.
Shannons: Specializes in car and bike insurance for motoring enthusiasts. Also offers home and CTP insurance, and holds auctions for collectible motorcycles, cars, and racing memorabilia.
Terri Scheer: Specializes in landlord insurance, covering tenant-related risks and unexpected property damage events.
Vero: Offers coverage to SMEs and larger businesses, including tax audits, workers’ compensation, professional and financial risks, non-profit, surety bonds, business vehicles, marine cargo, and commercial hull insurance. Also provides car and home insurance.
Several of Suncorp’s brands are known for delivering excellent customer experiences, particularly in the realm of car insurance. To discover which brands top our latest rankings for the best car insurers in customer satisfaction, refer to our guide.
4. AIA Australia Limited
. Market Share: 18.3%
. Claims Acceptance Rate: 97.6%
. Premiums In-Force: $3.2 Billion
. Financial Strength Rating: A+
. Head Office Location: Sydney, NSW
AIA Australia, established in 1972, operates as a subsidiary of the Hong Kong-based AIA Group, the largest pan-Asian life insurance group globally. AIA Australia is also the parent company of CommInsure, acquired in 2019. While CommInsure no longer issues new policies, AIA Australia continues to service existing life insurance plans.
Key Life Insurance Offering: Priority Protection Life Cover
Features and Benefits:
Death Benefit: Provides a lump sum equal to the sum insured upon the policyholder’s death.
Terminal Illness: Pays the sum insured if the policyholder is diagnosed with a terminal illness.
Final Expenses: Pays 10% of the sum insured (capped at $25,000) while AIA assesses the death claim.
Complimentary Family Final Expenses: Covers the lower of $20,000 or 10% of the sum insured if a child aged two to 17 dies or is diagnosed with a terminal illness.
Guaranteed Future Insurability: Allows increasing the sum insured before age 55 without further proof of health or insurability for significant personal or business events.
Benefit Indexation: Automatically raises the sum insured at the policy anniversary by the higher of the Consumer Price Index increase and 5%, adjusting premiums accordingly.
Premium Freeze: Enables keeping premiums constant for the succeeding year by decreasing the sum insured amount.
Premium and Cover Pause Benefit: Allows pausing premium payments and cover for three, six, or 12 months in specific situations.
Financial Planning Reimbursement: Reimburses up to $3,000 for financial planning advice obtained within 12 months of a claim payment.
Complimentary Interim Accidental Death Cover: Pays a lump sum in case of accidental death during the evaluation period, up to 90 days from the signed application date.
Accommodation Benefit: Reimburses accommodation costs incurred by immediate family members while the policyholder is more than 100km from home, capped at $250 per day for up to 30 days.
Counseling Benefit: Covers $200 per grief counseling session for the policyholder or immediate family member, capped at $1,200 per life insured.
In addition to life insurance, AIA provides health insurance plans and a health and wellbeing program named AIA Vitality, rewarding a healthy lifestyle.
5. Medibank Private Limited
With a market capitalization of $8.95 billion, Medibank Private Limited operates as a leading insurance company in Australia, specializing in private health insurance. Headquartered in Melbourne, VIC, it stands out for its significant market share, controlling over 25% of the private health insurance market and earning high customer satisfaction ratings. Apart from health policies, Medibank provides a range of insurance services, including life, pet, and travel insurance, to its 3.9 million customers. Additionally, the company offers various healthcare and wellness services.
Despite its success, Medibank faces cybersecurity challenges due to its scale and the sensitivity of the information it handles. Medibank is also known as one of the best insurance companies in the world. Recently, the company fell victim to a ransomware attack, compromising the personal details of its clients. In response, CEO David Koczkar issued an unreserved apology and committed to transparency in addressing the situation.
6. Steadfast Group Limited
Steadfast Group Limited, headquartered in Sydney, NSW, boasts a market capitalization of $5.93 billion and operates as the largest insurance broker network in Australia and New Zealand. Bringing together 417 general insurance brokerages under a single prominent brand, Steadfast offers a wide range of insurance products to its clients.
The commercial insurance line provided by Steadfast includes coverage for aviation, business interruption, business insurance packages, contract works, corporate travel, cyber risks, events, farm, marine, management liability, product liability, professional indemnity, public liability, trade credit, and workers’ compensation. On the personal lines side, Steadfast offers home and contents, landlord, life, motor, and strata insurance. Notably, Steadfast partners have collectively underwritten over $11.5 billion in gross written premiums for the small and medium-sized enterprise (SME) insurance market in the country.
7. Zurich Australia Limited
. Market Share: 13.8%
. Claims Acceptance Rate: 98.4%
. Premiums In-Force: $2.5 billion
. Financial Strength Rating: A+
. Head Office Location: North Sydney, NSW
Background:
Zurich, a subsidiary of the Swiss industry giant Zurich Group, ventured into the Australian insurance market in 1961 through the acquisition of the Commonwealth General Assurance Corporation. Zurich is one of the best insurance companies in Australia. Subsequent strategic moves included the 2016 purchase of Macquarie Life, which was later rebranded as Zurich Life Insurance Policies. In 2017, Zurich finalized the acquisition of OnePath, ANZ Bank’s life insurance arm, continuing to offer life insurance under the OnePath brand.
Flagship Life Insurance Policy – Wealth Protection Death Cover:
This policy offers a range of features, including:
Death & Terminal Illness Benefit: Pays a lump sum upon the policyholder’s death or terminal illness diagnosis.
Advancement for Funeral Expenses: Provides an early payment of $15,000 for funeral expenses.
Accidental Injury Benefit: Offers an early payment of a portion or the entire death benefit in case of specific accidental injuries.
Future Insurability Business Benefit: Allows policyholders to increase coverage without underwriting in the event of certain business events.
Inflation Protection: Automatically increases cover annually without health assessment, unless declined by the policyholder.
Future Insurability: Permits coverage increase without underwriting after specific life events.
Accommodation Expenses: Reimburses travel and accommodation expenses for an immediate family member caring for a bed-ridden policyholder over 100km from home.
Financial Planning Advice: Reimburses advice costs post-claim payment, capped at $3,000, with the benefit rising to $6,000 after five years of death cover.
Additional Information:
Zurich stands out as one of the top two life insurance companies in Australia with a claims acceptance rate exceeding the national average of 97.7%.
8. PSC Insurance Group Limited
. Market Capitalization: $1.73 billion
. Industry: Insurance Services Group
. Specialization: General Insurance
. Headquarters: Sydney, NSW
PSC is a versatile insurance services group operating in Australia, New Zealand, the UK, and Hong Kong. With a portfolio comprising more than 40 trading businesses, PSC’s primary operations encompass:
PSC Insurance Brokers:
Providing nationwide commercial insurance broking services, this unit operates across 16 offices, serving over 80,000 clients throughout the country.
PSC Network Insurance Partners:
A network of over 200 authorized representatives, extending services to more than 100,000 clients in Australia and New Zealand.
Life Insurance Broking & Workers’ Compensation Consulting:
Delivering comprehensive services to its Australian client base.
Chase Underwriting:
Offers underwriting services in the construction, plant, and equipment industries.
Breeze Underwriting:
Offers underwriting services for the hospitality, accommodation, equipment rental, and professional risks industries.
Medisure Indemnity:
Provides underwriting services to clients within the medical and healthcare sectors.
Online Travel Insurance:
Comprising multiple brands such as Insure4Less and Travel Insurance, this segment caters to the online travel insurance market.
9. Resolution Life Australia
Resolution Life Australasia holds a market share of 7.9%, boasting an impressive claims acceptance rate of 98.2%. The premiums in force stand at $1.3 billion, and the financial strength rating is graded at A-. The company’s headquarters are located in Sydney, NSW.
Originally a UK-based specialist manager of in-force legacy insurance businesses, Resolution Life acquired the life insurance unit of ASX-listed AMP Life in 2018. While the issuance of new AMP policies ceased at the end of January 2019, existing policyholders retain the ability to manage and augment their policies.
A noteworthy development occurred in 2022 when Resolution Life completed a significant separation from AMP by acquiring the remaining 19.13% of its equity interest in Resolution Life Australasia. The announcement of this deal was made in November 2021.
Despite the cessation of new AMP policies, Resolution Life continues to exert significant influence with an almost 8% market share, positioning itself as the second-highest in claims acceptance rates among the top five life insurance companies in Australia.
The methodology employed to rank the top Australian life insurance companies involves utilizing the latest market share data from APRA and premiums in-force figures from Plan for Life, Actuaries & Researchers (PFL Research). Claims statistics, specifically for death cover acquired through insurance brokers and financial advisers, are calculated using an online tool from the Australian Securities & Investments Commission’s (ASIC) consumer channel MoneySmart. Additionally, financial strength ratings are sourced from Standard & Poor’s (S&P).
10. NobleOak Life Limited
NobleOak Life Limited, headquartered in Sydney, NSW, operates as an insurance company with a market capitalization of $155.2 million. Specializing in life insurance, the company offers a diverse range of insurance policies to clients nationwide. NobleOak is one of the best insurance companies in Australia. NobleOak Life distributes its products through financial advisers, associations, and various business partners. In addition to life insurance, the company’s portfolio encompasses:
. Business expenses insurance
. Income protection insurance
. Self-managed super funds (SMSF) Insurance
. Total and permanent disability (TPD) insurance
. Trauma insurance
How much does life insurance typically cost in Australia?
Providing a one-size-fits-all average for life insurance premiums is challenging due to the unique circumstances of each individual. The cost is influenced by various factors that gauge the likelihood of a person making a claim, such as:
. Age
. Medical history
. Smoking status
. General health condition
. Level of cover
. Policy features
Premium structure To determine the appropriate coverage, experts recommend a thorough assessment of your lifestyle and financial responsibilities, taking into account factors like:
. Income
. Outstanding debts
. Living expenses
. Total assets
. Number of dependents
. Coverage period
. Premium calculations also vary based on the type of policy selected.
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